KUALA LUMPUR: The government will develop an oil palm biomass collection and processing centre (CPC) in Sandakan, Sabah with an investment of RM60 million through a collaboration with Nextgreen Global Bhd and Kumpulan Sawit Kinabalu, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin (pix).
The ministry is concerned about the development of palm oil’s downstream and biomass industry in Malaysia, including the eastern coastal area of Sabah which has great potential, he said in a reply to a question from Vivian Wong Shir Yee (PH-Sandakan) at the Dewan Rakyat today.
“It is estimated that the total availability of oil palm biomass in Sandakan Division is 13.04 million tonnes which consists of palm fronds (8.19 million tonnes), palm trunks (2.53 million tonnes), empty fruit bunches (0.87 million tonnes), mesocarp fibre (0.92 million tonnes) and oil palm kernel shell (0.53 million tonnes),” Chan said.
He noted that the Sandakan Division, which includes the districts of Sandakan, Kinabatangan, and Sugut/Labuk (Beluran), has an oil palm planting area of 742,304 hectares (ha) with a replanting area of 34,016 ha, and as many as 65 oil palm mills in operation.
According to the Malaysian Palm Oil Board (MPOB), Sabah has the highest number of operating oil palm mills (125 units) in 2023, and the country’s second-highest palm oil cultivation area (1.51 million ha).
Sabah also has 10 palm kernel-crushing plants and 11 operating refineries.
In addition, Chan said the Plantation and Commodities Ministry, through the MPOB, is also developing a palm oil biomass database system under the 12th Malaysia Plan, towards the commercialisation of high-value products based on palm biomass.
The database will make it easier for the industry to assess the production and consumption statistics and plan a long-term strategy for the commercialisation of palm biomass products. –Bernama
